Cornerstone Exercise 6-18 (Algorithmic) Recording Purchase Transactions Jeet Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April. a. On April 1, Jeet Company purchased merchandise on account from Reece Company with credit terms of 2/10,n/30. The selling price of the merchandise was $6,400, and the cost of the merchandise sold was $2,450. b. On April 1, Jeet paid freight charges of $100 cash to have the goods delivered to its warehouse. c. On April 8, Jeet returned $1,000 of the merchandise which had originally cost Reece $700. d. On April 10, Jeet paid Reece the balance due. Required: 1. Prepare the journal entries to record the April 1 purchase (ignore any freight charges) of merchandise by Jeet Company, April 1 Inventory Accounts Payable (Purchased inventory on account)